Breaking

Clearwire Falls After Dish Says It Won’t Block Spring

Jan. 29 (Bloomberg) -- Clearwire Corp., the wireless
Internet company that agreed to be acquired by Sprint Nextel
Corp., fell in trading after Dish Network Corp. said it won’t
seek regulatory action to block the transaction.

Dish in a letter told the Federal Communications Commission
it decided not to file a petition opposing Sprint’s acquisition
by Tokyo-based Softbank Corp. Sprint’s Clearwire transaction is
being reviewed as part of the $20 billion Softbank bid.

The U.S. Justice Department, in a filing posted today on
the FCC’s website, asked the FCC to defer consideration of the
Softbank acquisition. The department, including the FBI, and the
Department of Homeland Security are reviewing the proposal for
national security and law enforcement issues, according to the
filing.

Dish, in a letter filed yesterday, said it is in
“continued negotiations” to acquire Clearwire.

Investors have pushed up Clearwire’s shares on the
expectation that Sprint will increase its offer of $2.97 a
share. Dish has offered $3.30 a share, a transaction that would
be more complicated because Sprint, based in Overland Park,
Kansas, already owns a majority stake in Clearwire.

Dish in a Jan. 16 filing asked the FCC to pause its
consideration of the related Softbank deal. In yesterday’s
letter, Dish said it wouldn’t ask the FCC to block the purchase.

Sprint’s offer to Clearwire is conditioned on its ability
to complete the Softbank deal.

Shares Fall

Clearwire dropped 1.2 percent to $3.32 in Nasdaq Stock
Market trading at 12:25 p.m. in New York after earlier falling
as much as 4.2 percent, the biggest intraday decline since Dec.
17.

Mike DiGioia, a spokesman for Clearwire, declined to
comment. Separately, DiGioia said he expected Clearwire would
file its proxy related to Sprint’s takeover offer within a week.